Amazon urges problems on Reliance Retail deal, notice sent to Future Group
US-based e-commerce company Amazon has raised questions over the deal between Reliance Industries Limited (RIL) and Future Group. According to news agency Reuters, Amazon has alleged that Future Group has broken the rules of the contract. In this regard, Amazon has also sent a legal notice to the promoters of Future Group.
What is the matter
Last year, Amazon bought a 49 percent stake in Future Coupons for about Rs 1500 crore. Also, Amazon holds a 7.3 percent stake in Future Retail. Amazon has affirmed in the legal notice that Future Group has not accomplished the merits of the deal. With this dispute, there is a possibility that the matter may also go to court.
24713 crore deal from Reliance
Please tell that in August, Reliance Retail Ventures Limited (RRVL), a subsidiary company of Reliance Industries, had informed about the deal with Future Group. Under this, the company is going to acquire the retail and wholesale business and logistics and warehousing business of Future Group. wherein it will give access to over 1,800 stores of Big Bazaar, Easyday and FBB, spread across 420 cities across the country. This deal was signed in 24713 crores.
Question on the Jio-facebook deal too
This news related to Reliance Retail has come at a time when a deal between the company’s Jio platforms and Facebook is also under questions. According to a report, questions were raised by the Competition Commission of India (CCI) regarding data sharing in the deal between Jio platforms and Facebook. CCI said that the data that these companies will get from each other will increase anti-competitive behavior in the market. However, Facebook has ensured that there will be a ‘limited exchange’ of data from Reliance.
A lot of investment in Reliance Retail
Recently, the retail business of Reliance Industries has got another big investor. Abu Dhabi Investment Authority (ADIA) is going to invest Rs 5,512.50 crore in Reliance Retail. For this, it will get a 1.20 percent stake in Reliance Retail Ventures Limited (RRVL). With this investment, Reliance Retail Ventures Limited (RRVL) RRVL has raised a total of Rs 37,710 crore so far. Earlier, Silver Lake, KKR, General Atlantic, Mubadla, GIC, and TPG have announced investments in the company. Reliance Retail operates 12,000 stores across the country.